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[Utah Code Table of Contents]
[TITLE 32a. Table of Contents]
32A-9-101 Commission's power to issue licenses.
(1) The commission may issue liquor warehousing licenses for the warehousing, distribution, and transportation of liquor.
(2) A person may not warehouse, distribute, or transport liquor for resale to wholesale or retail customers unless the person is issued a warehousing license by the commission. A separate license is required for each warehousing facility. Violation of this subsection is a class B misdemeanor.
(3) The commission may prescribe by policy, directive, or rule, consistent with this title, the general operational requirements of licensees relating to:
(a) physical facilities;
(b) conditions of storage, distribution, or transport of liquor; and
(c) other matters considered appropriate by the commission.
1991
32A-9-102 Application and renewal requirements.
(1) A person seeking a warehousing license under this chapter shall file a written application with the department, in a form prescribed by the department. The application shall be accompanied by:
(a) a nonrefundable $250 application fee;
(b) an initial license fee of $750, which is refundable if a license is not granted;
(c) written consent of the local authority;
(d) a copy of the applicant's current business license;
(e) a bond as specified by Section 32A-9-105 ;
(f) evidence that the applicant is carrying public liability insurance in an amount and form satisfactory to the department;
(g) a floor plan of the applicant's warehouse, including the area in which the applicant proposes that liquor be stored;
(h) a signed consent form stating that the licensee will permit any authorized representative of the commission, department, or any law enforcement officer unrestricted right to enter the warehouse premises;
(i) in the case of an applicant that is a partnership, corporation, or limited liability company, proper verification evidencing that the person or persons signing the warehousing license application are authorized to so act on behalf of the partnership, corporation, or limited liability company; and
(j) any other documents and evidence the department may require by rule or policy to allow complete evaluation of the application.
(2) (a) All warehousing licenses expire on December 31 of each year.
(b) Persons desiring to renew their license shall submit a renewal fee of $1,000 and a completed renewal application to the department no later than November 30 of the year the license expires.
(c) Failure to meet the renewal requirements results in an automatic forfeiture of the license effective on the date the existing license expires.
(d) Renewal applications shall be in a form prescribed by the department.
(3) To ensure compliance with Subsection 32A-9-106 (9), the commission may suspend or revoke a warehousing license if a warehousing licensee does not immediately notify the department of any change in:
(a) ownership of the licensee;
(b) for a corporate owner, the:
(i) corporate officers or directors; or
(ii) shareholders holding at least 20% of the total issued and outstanding stock of the corporation; or
(c) for a limited liability company:
(i) managers; or
(ii) members owning at least 20% of the limited liability
company.
2003
32A-9-103 Qualifications.
(1) (a) The commission may not grant a warehousing license to any person who has been convicted of:
(i) a felony under any federal or state law;
(ii) any federal or state law or local ordinance concerning the sale, manufacture, distribution, warehousing, adulteration, or transportation of alcoholic beverages;
(iii) any crime involving moral turpitude; or
(iv) on two or more occasions within the five years before the day on which the license is granted, driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug.
(b) In the case of a partnership, corporation, or limited liability company the proscription under Subsection (1)(a) applies if any of the following has been convicted of any offense described in Subsection (1)(a):
(i) a partner;
(ii) a managing agent;
(iii) a manager;
(iv) an officer;
(v) a director;
(vi) a stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(vii) a member who owns at least 20% of the applicant limited liability company.
(c) The proscription under Subsection (1)(a) applies if any person employed to act in a supervisory or managerial capacity for the warehouse has been convicted of any offense described in Subsection (1)(a).
(2) The commission may immediately suspend or revoke a warehousing license if after the day on which the warehousing license is granted, a person described in Subsection (1)(a), (b), or (c):
(a) is found to have been convicted of any offense described in Subsection (1)(a) prior to the license being granted; or
(b) on or after the day on which the license is granted:
(i) is convicted of an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(ii) (A) is convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug; and
(B) was convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug within five years before the day on which the person is convicted of the offense described in Subsection (2)(b)(ii)(A).
(3) The director may take emergency action by immediately suspending the operation of the warehousing license according to the procedures and requirements of Title 63, Chapter 46b, Administrative Procedures Act, for the period during which the criminal matter is being adjudicated if a person described in Subsection (1)(a), (b), or (c):
(a) is arrested on a charge for an offense described in Subsection (1)(a)(i), (ii), or (iii); or
(b) (i) is arrested on a charge for the offense of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug; and
(ii) was convicted of driving under the influence of alcohol, any drug, or the combined influence of alcohol and any drug within five years before the day on which the person is arrested on a charge described in Subsection (3)(b)(i).
(4) (a) (i) The commission may not grant a warehousing license to any person who has had any type of license, agency, or permit issued under this title revoked within the last three years.
(ii) The commission may not grant a warehousing license to an applicant that is a partnership, corporation, or limited liability company if any partner, managing agent, manager, officer, director, stockholder who holds at least 20% of the total issued and outstanding stock of an applicant corporation, or member who owns at least 20% of an applicant limited liability company is or was:
(A) a partner or managing agent of any partnership that had any type of license, agency, or permit issued under this title revoked within the last three years;
(B) a managing agent, officer, director, or stockholder who holds or held at least 20% of the total issued and outstanding stock of any corporation that had any type of license, agency, or permit issued under this title revoked within the last three years; or
(C) a manager or member who owns or owned at least 20% of any limited liability company that had any type of license, agency, or permit issued under this title revoked within the last three years.
(b) An applicant that is a partnership, corporation, or limited liability company may not be granted a warehousing license if any of the following had any type of license, agency, or permit issued under this title revoked while acting in that person's individual capacity within the last three years:
(i) any partner or managing agent of the applicant partnership;
(ii) any managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(iii) any manager or member who owns at least 20% of the applicant limited liability company.
(c) A person acting in an individual capacity may not be granted a warehousing license if that person was:
(i) a partner or managing agent of a partnership that had any type of license, agency, or permit issued under this title revoked within the last three years;
(ii) a managing agent, officer, director, or stockholder who held at least 20% of the total issued and outstanding stock of a corporation that had any type of license, agency, or permit issued under this title revoked within the last three years; or
(iii) any manager or member who owned at least 20% of a limited liability company that had any type of license, agency, or permit issued under this title revoked within the last three years.
(5) (a) A minor may not be:
(i) granted a warehousing license; or
(ii) employed by a warehouse to handle liquor.
(b) The commission may not grant a warehousing license to an applicant that is a partnership, corporation, or limited liability company if any of the following is a minor:
(i) a partner or managing agent of the applicant partnership;
(ii) a managing agent, officer, director, or stockholder who holds at least 20% of the total issued and outstanding stock of the applicant corporation; or
(iii) a manager or member who owns at least 20% of the applicant limited liability company.
(6) A person, through any officer, director, representative, agent, or employee, or otherwise, either directly or indirectly, may not hold at the same time both a warehousing license and any other kind of license, agency, or permit issued under Title 32A, Chapter 3, 4, 5, 6, or 7, or Chapter 10, Part 2.
(7) If any person to whom a license has been issued under
this chapter no longer possesses the qualifications required
by this title for obtaining that license, the commission
may suspend or revoke that license.
2003
32A-9-104 Duties of commission and department before issuing licenses.
(1) Before any warehousing license is issued by the commission, the department shall conduct an investigation for the purpose of gathering information and making recommendations to the commission as to the issuance of the license. The information shall be forwarded to the commission to aid in its determination.
(2) Before issuing any warehousing license, the commission shall:
(a) determine that the applicant has complied with all license qualifications and requirements for making application for a license, as provided by Sections 32A-9-102 and 32A-9-103 , and that the application is complete;
(b) consider the applicant's ability to properly utilize the warehousing license within the restrictions of this title and the commission rules including, but not limited to, the types of any products other than liquor that the applicant is presently warehousing, the brands of liquor the applicant intends to warehouse, and the means the applicant intends to use to distribute the liquor;
(c) consider the physical characteristics of the premises where it is proposed that liquor be warehoused, such as location, proximity to transportation, and condition, size, and security of the premises; and
(d) consider any other factors or circumstances it considers
necessary.
1990
32A-9-105 Bond.
(1) Each warehousing licensee shall post a cash or corporate surety bond in the penal sum of $10,000 payable to the department, which the licensee has procured and must maintain for so long as the licensee continues to operate as a warehousing licensee.
(2) The bond shall be in a form approved by the attorney general, conditioned upon the licensee's faithful compliance with this title and the rules of the commission.
(3) If the surety bond is canceled due to the licensee's
negligence, a $300 reinstatement fee may be assessed. No
part of any cash or corporate bond so posted may be withdrawn
during the period the license is in effect. A bond filed
by a licensee may be forfeited if the license is finally
revoked.
1990
32A-9-106 Operational restrictions.
Each person granted a warehousing license and the employees and management of the licensee shall abide by the following conditions and requirements. Failure to comply may result in a suspension or revocation of the license, or other disciplinary action taken against individual employees or management personnel:
(1) All liquor warehoused in this state and sold to out-of-state consignees, shall be transported out of the state only by a motor carrier regulated under Title 72, Chapter 9, Motor Carrier Safety Act.
(2) All liquor warehoused in this state and sold to the department shall be transported by motor carriers approved by the department.
(3) All liquor transported to or from the licensee's premises shall be carried in sealed conveyances that are made available for inspection by the department while en route within the state.
(4) A licensee may not ship, convey, distribute, or remove liquor from any warehouse in less than full case lots.
(5) A licensee may not ship, convey, distribute, or remove any liquor from a warehouse to any consignee outside the state that is not licensed as a liquor wholesaler or retailer by the state in which the consignee is domiciled.
(6) A licensee may not receive, warehouse, ship, distribute, or convey any liquor that the commission has not authorized the licensee to handle through its warehouse.
(7) Each licensee shall maintain accounting and other records and documents as the department may require. Any licensee or person acting for the licensee, who knowingly forges, falsifies, alters, cancels, destroys, conceals, or removes the entries in any of the books of account or other documents of the licensee required to be made, maintained, or preserved by this title or the rules of the commission for the purpose of deceiving the commission or the department, or any of their officials or employees, is subject to the immediate suspension or revocation of the license and possible criminal prosecution under Chapter 12, Criminal Offenses.
(8) A liquor warehousing license may not be transferred from one location to another, without prior written approval of the commission.
(9) (a) A liquor warehousing licensee may not sell, transfer, assign, exchange, barter, give, or attempt in any way to dispose of the license to any other person, whether for monetary gain or not.
(b) A liquor warehousing license has no monetary value
for the purpose of any type of disposition.
2003
